Nepal Labour Migration Report 2020

1 Government of NepalMinistry of Labour , Employment and Social SecurityNepal Labour Migration Report 2020 Government of NepalMinistry of Labour , Employment and Social SecurityNepal Labour Migration Report 2020iiNepal Labour Migration Report 2020 Copyright 2020 Published byGovernment of NepalMinistry of Labour , Employment and Social SecuritySingha Durbar, Kathmandu Tel: (+977)-014211378, 4211791, 4211733 Fax: (+977)-014211877 Email: rights reserved. No parts of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior by: Print Communication Pvt. Ltd. Tel: (+977)-014241355, 4244148, Kathmandu, NepalPrinted by: Quality Printer Tel: (+977)-014228870, Kathmandu, NepalNEPAL Labour Migration Report 2020iiiLabour Migration has remained a salient aspect of Nepal s socio-economic landscape. The social and financial remittances and the exposure gained abroad have contributed positively to the Nepali economy.

2 However, the Government of Nepal is also cognizant of the challenges faced by Nepali youth during the pre-departure, employment and return phases of Migration . In this context, efforts are geared towards making foreign employment safe, rewarding and dignified while also emphasizing on domestic job creation to ensure foreign employment is an informed choice for Nepali workers. As comprehensively presented in the Nepal Migration Report 2020, the Government of Nepal has initiated multilevel Migration related reform efforts at the subnational, national, bilateral, regional and global levels. These collectively contribute to ensuring the protection of Nepali migrant workers throughout the Migration cycle. In recent years, the fast-changing global Migration landscape has put the spotlight on Migration issues, especially with the adoption of the Global Compact for Safe, Orderly and Regular Migration (GCM) and the Migration related indicators in the Sustainable Development Goals (2030).

3 In addition, within Nepal , federalization has presented immense opportunities to initiate worker-centered reform efforts that ensure safe Labour Migration . Recognizing the importance of evidence for policymaking, this Report also presents a detailed analysis of Labour Migration from Nepal , with an emphasis on the years 2017/18 and 2018/19. This Report also delves into the complexities of transnational Migration governance. It presents rich information on various facets of Labour Migration that will contribute to an evidence-based discourse on Migration issues. It calls for a critical reflection on key issues in Migration and more concerted efforts across different Migration related stakeholders, both at the destination country and Nepal . I am confident that the knowledge base generated from this Report will be critical in informing future efforts in Migration governance. I would like to thank the Steering and Working Committees, the International Labour Organization and everyone who contributed in the preparation of this well-researched, analytical documented.

4 Rameshwor Ray YadavMinisterMinistry of Labour , Employment and Social Security ForewordNEPAL Labour Migration Report 2020ivNEPAL Labour Migration Report 2020vIt is my pleasure to introduce the Nepal Labour Migration Report 2020. Relying on the available databases maintained by the Government of Nepal and a comprehensive review of the multiple reform efforts targeting different facets of Labour Migration , this Report weaves together a comprehensive and accessible account of Labour Migration from Nepal . Similarly, it critically analyzes the thematic gaps and challenges in relation to Labour Migration and provides recommendations to address the challenges and gaps as well. The Report is a timely contribution to inform the Government s Migration related reform initiatives, noting its fast-changing context at the national and international levels. It sheds light on the transnational nature of Migration and the regional dynamics of this phenomenon which necessitates cooperation with both the countries of destination and other Labour origin countries, which Nepal has increasingly prioritized.

5 It also deepens the understanding of the occupational profile of Nepali migrant workers, highlighting the need to focus on better data management and pragmatic skills-based partnerships to ensure high returns of Migration . Given the multiplicity of stakeholders engaged in Migration governance, it emphasizes on the need to strengthen horizontal and vertical coordination across concerned agencies to realize the objectives of safe, rewarding and dignified Migration from Nepal . I would like to thank everyone who provided critical input at various stages of the drafting and preparation of the Report . Binod KCSecretary Ministry of Labour , Employment and Social SecurityForewordNEPAL Labour Migration Report 2020vi ILONEPAL Labour Migration Report 2020viiSteering Committee Binod , Ministry of Labour , Employment and Social Security CoordinatorUmesh DhunganaJoint Secretary, Ministry of Labour , Employment and Social Security Member Secretary Bhisma Kumar Bhushal Director General, Department of Foreign EmploymentMemberRajan Prasad ShresthaExecutive Director, Foreign Employment BoardMemberRichard Howard Country Director, ILOM emberMoti Bahadur Shrees Under Secretary , Ministry of Foreign Affairs MemberBinita Bhattarai Director, Department of ImmigrationMemberWorking Committee Deepak Dhakal Under Secretary, Ministry of Labour , Employment and Social Security CoordinatorDinbandhu Subedi Under Secretary, Foreign Employment BoardMemberUpasana KhadkaPolicy Advisor, Ministry of Labour , Employment and Social Security MemberBasanta KarkiNational Project Coordinator.

6 ILOM emberAnaraj Tiwari Statistics Officer, Central Bureau of Statistics MemberRaju ShresthaComputer Engineer, Ministry of Labour , Employment and Social SecurityMemberSuresh Subedi Officer, Ministry of Labour , Employment and Social Security MemberJamuna Kafle and Giri Acharya, Section Officers at the Ministry of Labour , Employment and Social Security (MOLESS) provided invaluable support. Contributions from the following individuals is acknowledged: Neha Choudhary, Prakriti Thami, Jeevan Baniya, Hom Karki, Dev Chandra Rai, Arjun Chalise, Bind Kumar Sah, Rachana Pandit, Sambhrant Bista, Sarin Upreti, Saroj Pokhrel, Buddha Singh Kepchhaki, Rammani Duwadi, Ram Prasad Bhattarai and Kiran Labour Migration Report 2020viii Basanta KarkiNEPAL Labour Migration Report 2020ixFOREWORD ACRONYMS XIIIEXECUTIVE SUMMARY XVCHAPTER 1: OVERVIEW 1 CHAPTER 2: Labour Migration - A SNAPSHOT Current Trends in Labour Migration Destination Countries of Nepali Migrant Workers Origin Provinces and Districts Mode of Obtaining Labour Approval Labour Approval Renewal Age Skills Stocks of Migrant Workers Labour Migration from a Regional Perspective Return Migration 37 CHAPTER 3: Labour Migration GOVERNANCE IN Nepal Institutional Arrangements Multi-level Labour Migration Governance 50 CHAPTER 4.

7 THEMATIC TOPICS Compensation through the Foreign Employment Welfare Fund: A Review Labour Diplomacy and The Role of Missions in Labour Migration Governance Remittance Occupation Profile of Migrant Workers 98 CHAPTER 5: WAY FORWARD 107 ANNEX 119 REFERENCES 141 ContentsNEPAL Labour Migration Report 2020xTABLE 1 : Government of Nepal s Periodic Plans and Volume of Annual Labour Approvals (2nd Row) 4 TABLE 2: Skills Distribution of Nepali Migrant Workers by Mode of Obtaining Labour Approval 33 TABLE 3: Employment Status of Returnee Workers by Province 41 TABLE 4: Variation in Employment Status Disaggregated by Last Destination 43 TABLE 5: Industries that Returnee Migrant Workers are Currently Engaged In ( Nepal ) 43 TABLE 6 : Number of Migration Related Service Providers 48 TABLE 7: Coordination Committees as per Foreign Employment Policy, Act and Rules 50 TABLE 8: Major Changes in the Foreign Employment Act 52 TABLE 9: Minimum Referral Wages by Destination Country 56 TABLE 10: Recruitment Costs Prescribed by the Government of Nepal 60 TABLE 11: Foreign Employment Related Responsibilities of Local Governance 63 TABLE 12: Selective MRCs in Operation Across Nepal 64 TABLE 13: BLAs and MOUs Signed by the Government of Nepal 65 TABLE 14: SDG 2030 & Labour Migration 72 TABLE 15: Compensation for Disabilities by Country 82 TABLE 16: Cause of Death by Year 83 TABLE 17: Cause of Death by Country 83 TABLE 18: Labour Counselors and Attaches Appointed by GON 86 TABLE 19: Remittance Transfer Costs 95 TABLE 20: Sale of Foreign Employment Savings Bond 96 TABLE 21: Skills Categorization of Nepali Migrant Workers (2017/18 and 2018/19) 98 TABLE 22: Reclassification of Occupational Categories (2018/19) 100 TABLE 23: Occupation Profile of Migrants by Gender 101 TABLE 24.

8 Occupation Profile of Migrants by Mode of Obtaining Labour Approval 102 TABLE 25: Occupation Profile of Migrants by Destination Country 103 TABLE 26: Top 5 Destination Countries by Major Occupational Category 104 TABLESNEPAL Labour Migration Report 2020xiFIGURE 1 : Trend in Obtaining Labour Approvals (left) and Incoming Remittance (right) 3 FIGURE 2: Trend in Obtaining Labour Approvals (Disaggregated by Gender) 12 FIGURE 3: Labour Migration to the Republic of Korea via EPS (Disaggregated by Gender) 12 FIGURE 4: Major Destination Countries for Labour Migration (Overall) 13 FIGURE 5: Major Destination Countries for Labour Migration (Female) 14 FIGURE 6: Country-wise Trends in Labour Migration 15 FIGURE 7: Emerging Destination Countries for Nepali Migrant Workers 16 FIGURE 8: Provincial Profile of Nepali Migrant Workers 17 FIGURE 9: Provincial Profile of Nepali Labour Migrant Workers (by Major Destination Country, 2018/19) 18 FIGURE 10: Origin District of Total Migrant Workers (2017/18) 20 FIGURE 11: Origin District of Total Migrant Workers (2018/19) 21 FIGURE 12: Mode of Obtaining Labour Approval 22 FIGURE 13: Recruitment Process 23 FIGURE 14: Volume of Migrant Workers Mobilized by Recruitment Agencies (2018/19) 24 FIGURE 15: Number of Countries where Recruitment Agencies Mobilized Workers (2018/19) 25 FIGURE 16: Number of Recruitment Agencies Sending Workers by Destination Country (2018/19) 26 FIGURE 17: Trends in Labour Approvals by Mode of Obtaining Labour Approval 27 FIGURE 18: Trends in Obtaining Individual Labour Approvals by Gender 27 FIGURE 19: Major Destination Countries for Individual Labour Approvals (Overall) 28 FIGURE 20: Trends in Regularization of Labour Approvals by Gender 29 FIGURE 21: Major Destination Countries for Regularization (Overall) 29 FIGURE 22: Trends in Labour Approval Renewal by Gender 30 FIGURE 23.

9 Major Destination Countries for Labour Approval Renewals (Overall) 31 FIGURE 24: Major Destination Countries for Labour Approval Renewals (Female) 31 FIGURE 25: Age Distribution of Nepali Migrant Workers by Gender 32 FIGURE 26: Distribution of Major Destination Countries by Age Group (2018/19) 32 FIGURE 27: Distribution of Major Destination Countries by Age Group (2017/18) 33 FIGURE 28: Current Migrant Workers in Malaysia by Nationality (2018) 34 FIGURE 29: Sectors Employing Nepali Workers in Malaysia (2018) 35 FIGURE 30: Trends in Annual Labour Migration from the Region (Country-wise) 36 FIGURE 31: Slowdown of Migrant Worker Outflow to the GCC (In Thousands) 36 FIGURE 32: Returnee Population by Age 38 FIGURE 33: Last Migration Destination of Returnees by Province (Per cent) 39 FIGURE 34: Reason for Return to Nepal by Destination 40 FIGURE 35: Employment Status of Returnee Workers by Last Destination 41 FIGURE 36: Occupation of Returnees in Nepal and at the Destination Country 42 FIGURE 37: Employment Type of Returnee Workers by Last Destination Country 44 FIGURE 38: Individual and Institutional Cases Registered and Resolved 58 FIGURE 39: Cases Registered and Solved by FET 59 FIGURE 40: Renewals of Labour Approvals by Province (2018/19) 61 FIGURE 41: Total Amount Provided as Death or Disability/Sickness Compensation 80 FIGURE 42: Compensation for Injuries by Gender 81 FIGURE 43: Causes of Disability and Compensation Provided 81 FIGURE 44: Number of Deaths by Gender 82 FIGURE 45: Residential Missions of Nepal 85 FIGURE 46: Total Remittance Inflow to Nepal (Billion USD) 92 FIGURE 47: Top Ten Remittance Recipients as % of GDP 92 FIGURE 48: Remittance Receiving Households by Income Percentiles 93 FIGURE 49: Remittance by Destination Country (In Billion USD) 94 FIGURE 50.

10 Word Cloud of Occupations of Nepali Migrant Workers (2018/19) 99 FIGURESNEPAL Labour Migration Report 2020xii Upasana KhadkaNEPAL Labour Migration Report 2020xiiiDOFED epartment of Foreign EmploymentFEBF oreign Employment BoardMOLESSM inistry of Labour , Employment and Social Security FETF oreign Employment Tribunal NMRCN ational Migrant Resource CenterMRC Migrant Resource CenterESCE mployment Service Center GCCGulf Cooperation CouncilMOUM emorandum of UnderstandBLAB ilateral Labour Agreement CIOPC omprehensive Information and Orientation ProgramFEIMSF oreign Employment Information Management System FESBF oreign Employment Savings Bond NPRN epali RupeeNRBN epal Rastra Bank CTEVTC ouncil for Technical Education and Vocational Training NSTBN ational Skills Testing Board GCMG lobal Compact for Safe, Orderly and Regular MigrationADDAbu Dhabi DialogueCPColombo ProcessGFMDG lobal Forum for Migration and DevelopmentSAARCS outh Asia Association for Regional CooperationNLFSN ational Labour Force Survey FETF oreign Employment Tribunal ILOI nternational Labour OrganizationIOMI nternational Organization for MigrationAcronyms Nepal Labour Migration Report 2020xiv ILONEPAL Labour Migration Report 2020xvExecutive Summary The Nepal Labour Migration Report 2020 is the Ministry of Labour , Employment and Social Security s (MOLESS) effort to present a comprehensive overview of Labour Migration from Nepal , with an emphasis on the years 2017/18 and 2018/19.